PMFBY is celebrating its ninth anniversary on February 18, 2025. Launched in 2016 by Prime Minister Narendra Modi, it’s India’s comprehensive crop insurance scheme that has become the world’s largest in terms of farmer applications. Here are the key aspects:
Major Features:
- Provides financial protection to farmers against crop losses from natural calamities, pests, and diseases
- Affordable premium rates: 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops
- Remaining premium is subsidized by the government
- Complete premium is paid by the government for farmers in North-Eastern States, Jammu & Kashmir, and Himachal Pradesh
Technological Implementation:
- Uses advanced technology including satellite imagery, drones, and UAVs
- Implements YES-TECH (Yield Estimation System Based on Technology) from Kharif 2023
- Features CCE-Agri App for crop cutting experiments
- Integrated with National Crop Insurance Portal (NCIP)
Achievements as of February 2025:
- Total claims of ₹51,75,276 crore
- 23 states and Union Territories implementing the scheme
- 25% growth in farmer enrollment (2023-24 vs 2022-23)
- Non-loanee farmers’ coverage increased to 55%
- Over 23.22 crore farmer applicants received claims since launch
- Sum insured of ₹17,29,395 crore
Recent Developments:
- The Union Cabinet approved continuation of PMFBY and Restructured Weather Based Crop Insurance Scheme till 2025-26
- Total budget allocation of ₹69,515.71 crore
- Shows significant growth with 1163.66% increase in budget from 2016-2017
RiRisks Coveredsks Covered
Risk Covered:
- Standing Crop Losses: Protection against non-preventable risks including natural disasters, weather events, pests, diseases, and drought affecting standing crops.
- Prevented Sowing: Compensation up to 25% of sum insured when unfavorable weather prevents farmers from sowing their crops in notified areas.
- Post-harvest Losses: Protection for crops in “cut and spread” condition for up to 14 days after harvesting on individual farm basis.
- Localized Calamities: Coverage for individual farms against local hazards like hailstorms, landslides, and inundation affecting specific farmlands.
Key Benefits:
- Affordable Premiums: The maximum premium payable by the farmer will be 2% for the Kharif food and oilseed crops. For rabi food and oilseeds crop, it is 1.5% and for yearly commercial or horticultural crops it will be 5%. The remaining premium is subsidized by the government.
- Comprehensive Coverage: The scheme covers natural disasters (droughts, floods), pests, and diseases, along with post-harvest losses due to local risks like hailstorms and landslides.
- Timely Compensation: PMFBY aims to process claims within two months of the harvest to ensure that farmers get the compensation quickly, preventing them from falling into debt traps.
- Technology-Driven Implementation: PMFBY integrates advanced technologies like satellite imaging, drones, and mobile apps for precise estimation of crop loss, ensuring accurate claim settlements.